Are you a homeowner in Arizona who is facing foreclosure? If so, you’re likely feeling a range of emotions, from confusion and frustration to fear and desperation. While the prospect of losing your home can be daunting, it’s important to remember that you are not alone. Thousands of Arizonans go through foreclosure every year, and there are resources available to help you through the process.
In this blog post, we will provide an overview of the foreclosure process in Arizona, as well as some tips on how to protect yourself and your family.
What is Foreclosure?
Foreclosure is a legal process whereby a lender (usually a bank or other financial institution) attempts to recover the balance of a loan from a borrower who has defaulted on their payments. In Arizona, foreclosure proceedings can be initiated after a borrower misses just one payment, and the process can take several months to complete.
How to Avoid Foreclosure
The best way to avoid foreclosure is to make your loan payments on time and in full each month. However, we understand that life can sometimes get in the way. If you find yourself falling behind on your mortgage payments, here are a few things you can consider.
Talk to Your Lender
The first thing you should do is contact your lender and explain your situation. Many lenders are willing to work with borrowers who are experiencing financial difficulties and may be able to offer a repayment plan or other options that can help them get back on track. If you’re unable to reach an agreement with your lender, there are still things you can do to try to avoid foreclosure.
Short Sale Your Home
For example, you may be able to sell your home through a short sale, which is when you sell your home for less than the balance of your mortgage, and the proceeds from the sale go to pay off your loan.
Refinance Your Loan
You can also try to refinance your mortgage, which may lower your monthly payments and make it easier for you to stay current on your loan.
The Types of Foreclosure
There are two types of foreclosure in Arizona: judicial and non-judicial.
Court-ordered foreclosures begin when a lender asks for an order permitting a foreclosure sale through a lawsuit. A lender will automatically win a case if you do not respond with a written answer. However, if you decide to defend the foreclosure suit, the court will review the evidence and determine the winner. You will be ordered to sell your home at auction if the lender wins a judgment against you.
Nonjudicial foreclosures are completed according to state statutes if the lender chooses them. In a foreclosure sale, the lender can sell the home after completing the required steps. In most cases, lenders prefer nonjudicial processes because they are faster and cheaper than court litigation.
How to Stop or Delay Foreclosure
If you’re facing foreclosure, there are several things you can do to try to stop or delay the process.
Negotiate with Your Lender
Another option is to negotiate with your lender to see if they are willing to work with you. This could involve modifying your loan terms, such as extending the length of your loan or reducing your interest rate.
Request a Mediation
If you’re unable to reach an agreement with your lender, you can request mediation through the Arizona Supreme Court. This is a process whereby a neutral third party will help you and your lender come to an agreement.
File for Bankruptcy
One option is to file for bankruptcy, which will immediately halt all foreclosure proceedings. However, this is a drastic measure and should only be considered as a last resort.
What to Do if You Can’t Avoid Foreclosure
First and foremost, it’s important to know your rights as a borrower. For example, in Arizona, the lender is required to provide the borrower with a Notice of Right to Cure before initiating foreclosure proceedings. This notice must be sent at least 45 days before the foreclosure sale and will give the borrower an opportunity to bring their loan current and avoid foreclosure.
It’s also important to know that in Arizona, lenders are not allowed to evict borrowers from their homes until after the foreclosure sale has taken place.
Once the foreclosure sale has taken place, the borrower will have to vacate the property. If they don’t do so voluntarily, the lender can file an eviction lawsuit.
The Consequences of Foreclosure
Foreclosure can have a major impact on your life, both emotionally and financially. In addition to the obvious consequences, such as losing your home and damaging your credit score, foreclosure can also lead to homelessness, job loss, and mental and physical health problems.
It can also have an impact on the community. When a home is foreclosed, the value of other homes in the neighborhood can decrease, which can lead to more foreclosures and a further decline in the community.
Resources for Homeowners Facing Foreclosure in Arizona
If you’re facing foreclosure in Arizona, there are several resources available to help you. The Arizona Foreclosure Prevention Helpline offers free counseling and assistance to homeowners who are struggling to make their mortgage payments.
The Arizona Department of Housing also provides assistance to homeowners facing foreclosure. Their website includes a list of approved housing counselors who can help you explore your options and make a plan to avoid foreclosure.
Avoid Foreclosure by Selling Your Home
If you’re facing the possibility of foreclosure and want to avoid the negative consequences, selling your home may be the best option. At Favor Home Solutions, we specialize in helping homeowners avoid foreclosure by making them a cash offer.
Our process is simple:
- call or fill out our form to get started
- we take a look at your home and make you an offer
- we close on the date of your choice
If you’d like to learn more about getting a free, no-obligation offer for your home, get in touch with us today!